The calculation of total asset turnover is:
A. Average total assets multiplied by net sales.
B. Net assets multiplied by total assets.
C. Gross profit divided by average total assets.
D. Average total assets divided by gross profit.
E. Net sales divided by average total assets.
Answer: E
You might also like to view...
In the context of the important values in the Japanese culture, paternalism is often measured by a manager's involvement in both personal and off-the-job problems of subordinates.
Answer the following statement true (T) or false (F)
Short-term creditors are usually most interested in assessing:
A) marketability. B) profitability. C) operating results. D) liquidity.
Managing individuals in organizations is a task made difficult by the fact that everyone is ____________?
a. Similar b. An employee c. Different d. Difficult
Trust Engineering Company is considering the purchase of a new machine to replace an existing one. The old machine was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight line basis to a zero salvage value over a 10-year life. The current market value of the old machine is $14,000. The new machine, which costs $30,000, falls into the MACRS 5-year class and has an estimated life of 5 years. The change in depreciation expense that results from accepting the project and will be considered in the capital budgeting analysis is _____. The MACRS rates for 5-year class are Year 1-20%, Year 2-32%, Year 3-19%, Year4-12%, Year 5-11%, Year 6-6%.
A. $10,500 B. $23,400 C. $44,000 D. $20,000 E. $17,000